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Marshall on Equilibrium and Time. A Reconstruction

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  • De Vroey, Michel

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

The aim of this paper is to put forward an alternative to the standard interpretation of Marshall's conception of equilibrium and time. In this new interpretation, the market-period receives a central role. It is considered as the unit of time of the analysis, on the one hand, and as the only direct observable market reality of the Marshallian construct, on the other. The standard interpretation of Marshall’s equilibrium taxonomy, with its threefold sub-division (market-period, short-period and long-period equilibrium) is proposed instead. An alternative interpretation of Marshall’s corn model is proposed, wherein perfect information is considered as the linchpin of the making of equilibrium. The relationship between market-period and normal equilibrium is re-examinated. It is shown that market-clearing is always realized in Marshallian theory. Finally, it is argued that this reconstruction permits avoiding a series of interpretative pitfalls.

Suggested Citation

  • De Vroey, Michel, 1997. "Marshall on Equilibrium and Time. A Reconstruction," LIDAM Discussion Papers IRES 1997010, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:1997010
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    References listed on IDEAS

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    1. Milton Friedman, 1971. "A Theoretical Framework for Monetary Analysis," NBER Books, National Bureau of Economic Research, Inc, number frie71-1, March.
    2. De Vroey, Michel, 1999. "The Marshallian Market and the Walrasian Economy. Two Incompatible Bedfellows," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(3), pages 319-338, August.
    3. D. A. Walker, 1969. "Marshall's Theory of Competitive Exchange," Canadian Journal of Economics, Canadian Economics Association, vol. 2(4), pages 590-598, November.
    4. Negishi,Takashi, 1985. "Economic Theories in a Non-Walrasian Tradition," Cambridge Books, Cambridge University Press, number 9780521259675.
    5. George J. Stigler, 1992. "Marshall on Market Price," History of Political Economy, Duke University Press, vol. 24(4), pages 967-971, Winter.
    6. Philip L. Williams, 1986. "A Reconstruction of Marshall's Temporary Equilibrium Pricing Model," History of Political Economy, Duke University Press, vol. 18(4), pages 639-653, Winter.
    7. Hicks, J. R., 1979. "Critical Essays in Monetary Theory," OUP Catalogue, Oxford University Press, number 9780198284239, Decembrie.
    8. John Aldrich, 1996. "The Course of Marshall's Theorizing about Demand," History of Political Economy, Duke University Press, vol. 28(2), pages 171-217, Summer.
    9. De Vroey, Michel, 1999. "Equilibrium and Disequilibrium in Economic Theory: A Confrontation of the Classical, Marshallian and Walras-Hicksian Conceptions," Economics and Philosophy, Cambridge University Press, vol. 15(2), pages 161-185, October.
    10. Ragnar Frisch, 1950. "Alfred Marshall's Theory of Value," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(4), pages 495-524.
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    Cited by:

    1. Michel De Vroey, 2006. "The temporary equilibrium method: Hicks against Hicks," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 13(2), pages 259-278.
    2. Michel De Vroey, 2004. "Lucas on involuntary unemployment," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(3), pages 397-411, May.
    3. Juli Radev, 2011. "Static and dynamic market disequilibrium," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 36-63.
    4. Michel, DE VROEY, 2004. "On the Right Side for the Wrong Reason : Friedman on the Marshall-Walras divide," LIDAM Discussion Papers IRES 2004015, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    5. Emeric Lendjel, 2000. "The statistical origin of the cobweb diagram," Post-Print halshs-03243880, HAL.
    6. Emeric Lendjel, 2000. "The statistical origin of the cobweb diagram," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03243880, HAL.

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